Vidushi Puri, Bennett University
ABSTRACT
Scandals, such as those involving Enron and Satyam Computer's "creative-accounting" scam, are frequently the "obvious" failings of corporations. India's Enron and Satyam Computer are examined in depth in this article. The rising prevalence and severity of corporate accounting fraud in India is a big concern. The corporate governance structure in India has been severely harmed by this affair. Indeed, research has indicated that an increasing number of frauds have harmed the integrity of financial statements, caused significant financial losses, and destroyed investors' trust in the usefulness and trustworthiness of financial statements.
With white-collar crime on the rise, it's critical that laws are efficiently enforced with strong penalties, exemplary punishments, and the right spirit. This form of 'creative' accounting is becoming more common in public firms, prompting regulatory probes. Corporate accounting fraud is on the rise, and it's becoming more serious.
In 2009, the founders of Satyam committed fraud, illustrating that human greed, ambition, and the desire for money, fame, and power may have a significant impact on 'the science of conduct.' Satyam was pushed to its knees by the tunnelling effect, not by agency difficulties as was the case with Enron. In emerging markets, the Satyam affair demonstrates the relevance of market legislation and corporate governance. In reality, the fraud forced India's government to strengthen its CG regulations in order to prevent future frauds. As a result, big financial reporting frauds must be analysed for lessons gained and solutions for avoiding future fraud instances
Comentarios